An excellent comment by Crayz over at Brad DeLong's
I think the point raised in this comment by Crayz from crayz.dyndns.org
at Note: Jared Bernstein on "Outsourcing": Archive Entry From Brad DeLong's Webjournal
is worth exploring further:
"You know, in the end, we don't need to 'maintain an advantage' over other countries. If everyone in the world had our amount of wealth, that would be great for everyone.
The problem with all these developing countries seems to be not that they're competing with us, but that they're just stealing our damn jobs instead of making their own. That is, that because they aren't actually consuming anything, they're just taking our jobs, producing the things we produced, except cheaper, taking our money when we buy those things from them, and just pocketing it.
Because they spend no money themselves they create no demand for jobs that didn't already exist."
I think he has pin pointed a major problem with the current trend. The people who are getting jobs previously filled by US domestic workers, are being paid too little to create any real demand for products, in many cases, this includes the ones they produce. I'll go a little further down the logic trail here, and make an obvious point, the only people benefitting to any great extent from any of this, are those that own the means of production. Many of the workers are basically treated like the old company town workers or worse, which I admit, might be an improvement from nothing, but the real gain goes to the top.